New Ammo in the Fight for Subprime Loan Securities Victims
A recent article in the Wall Street Journal points out a strategy that has given victims of the subprime loan crisis new hope: using the 1921 Martin Act as a legal tool to crack down on misleading mortgage-backed securities offerings. Why is the Act so powerful? Simple: it takes away the burden for a plaintiff to prove intent to defraud, making filing a lawsuit against an unethical securities company that much easier for plaintiffs.
This is great news for the people defrauded by securities companies that failed to warn them of mortgages that didn’t meet bare-minimum standards for lending, causing people to lose money on investments that weren’t backed by solid dollars. This crisis has been sending shock waves throughout the United States’ volatile economy and has devalued the hard-earned savings of who knows how many Americans. Now victims have a way to fight back. By using this act, New York prosecutors have a great tool in their regulatory arsenal, and individual attorneys may use this same tool in court.
Regardless of whether the Martin Act can be used in court, the subprime mortgage securities crisis can prove confusing and complicated to litigate. Victims often don’t realize they have a limited time in which to file their lawsuit, and their judgment is clouded by disappointment, anger, and fear about their financial security. Luckily, these victims do have options. The right securities attorney can help assess and investigate their case, file the lawsuit, and stand up for their rights in court. With the Martin Act at their side, their job could be even more effective.
Have you lost money in securities based on bad mortgages? Don’t panic. Call the Louthian Law Firm today for more information and a free case consultation. We’ve got years of experience and the resources it takes to help you today.
